InvestorQ : I have been holding on to Bata stock for a very long time and I am happy with the performance. After the latest results, should I add more of the stock?
Katherine Gonsalves made post

I have been holding on to Bata stock for a very long time and I am happy with the performance. After the latest results, should I add more of the stock?

Answer
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Rutuja Nigam answered.
1 year ago


You can hold on to the stock and keep adding to the stock on every dip. If you look at the latest quarter results, Bata reported a 7.4% rise in total revenues to Rs.679 crore and a 36% rise in net profits to Rs.105 crore. While the growth in the retail channel was robust at around 11%, the ecommerce channel did not up a very good performance due to the modified rules on ecommerce transactions and structuring. For the full year ended March, the company reported a 10% growth in sales and 50% growth in net profits.

The company continues to quote at P/E valuations of above 50, but that is the kind of premium valuations it has sustained over time. It is also in tune with what other FMCG companies command in the market and that is relatively not too steep. While the current holdings can be left intact, you can ideally look to accumulate the stock gradually at lower levels.